If you’re celebrating your free money from the Federal aid package, I’m here to ruin the party, and I apologize, because I like parties, but I also gotta keep it real.
Some people are calling it a stimulus check for some reason, but it doesn’t really matter what it’s called, because it doesn’t stimulate anything except the desire to make a cocktail, and it only aids the politically connected elite class.
As you know, the extortion branch of the government called “The Treasury Department” is giving the tax livestock in the middle and lower class only a few hundred billion dollars, while the politically connected get exponentially more with a few trillion dollars.
The magical free money is coming from a monopoly banking cartel called “The Federal Reserve.” which is basically plundering the money yet to be paid by the tax livestock who have yet to be born.
It’s sorta like taking out a credit card in your great grandchild’s name and charging $1200, and the interest to be paid will be much more when the bills come due.
For those of us non-politically connected who are financially responsible and have money saved up, the money dished out just makes the money in savings become worth less, so this creates incentives to not bother saving money, or even working for money.
Just have the Fed dispense money every month, and we’ll all be rich and retired, right?
“But Jeremy, doesn’t the $1200 just give me more buying power than I had before?”
“Doesn’t it just add more to my bank account and making me that much wealthier?”
“Isn’t it like getting an extra paycheck from work?”
That $1200 will cost you exponentially more in the long run, and it is not like getting an extra paycheck.
When you get a paycheck from your job, that is a reflection of the value you added to society in the form of helping provide a service or producing something.
If the money just appears out of nothing, it just dilutes and devalues the current circulating money.
It’s like adding more mixer to a cocktail, it won’t make the drink stronger.
The act of producing goods and services that improve the lives of others is what gives the money the value.
The money is just a tool to exchange things of value.
The creation of money doesn’t create the wealth; The act of providing services and producing things of value is what creates the wealth.
To simplify; Let’s say you have $20 in circulation, and a tennis ball is worth $2, and the Fed adds $10 more in circulation that isn’t attached to anything that’s been produced.
The price of the tennis ball will go up to $3 because the denomination of money supply went up.
Now, even though the price of the tennis ball is $3, the value of the tennis ball is still at $2.
Furthermore, if people are locked down and not producing tennis balls, like our current situation, the supply doesn’t increase the way it normally would, so tennis balls become more scarce over that time, which of course makes the price go up even more.
Now that $3 tennis ball increases in price to $4
Of course, on lockdown and in a depressed economy, the materials and resources in the supply web which contribute to producing the tennis balls also suffocates, which increases the cost even more.
So the tennis ball which once had a price of $2 and a perceived value of $2, now has a price of $5, and a cost of $4, which is still more than the perceived value.
There’s way more than that, such as the change in incentives from the magical money which makes the tennis ball producers go out of business, followed by bailouts, subsidies, price controls, etc. but I don’t want to ruin the socialist party too much.
This is why it’s important to pay more attention to results rather than intentions.
The intention may be to “stimulate” an economy and help businesses, but the results from all the changes in incentives from artificially propping up the market makes the non politically connected businesses and citizens suffer in the long run.
It doesn’t make anything more affordable, but since the politically connected wealthy class get like 75% of the money that came from nothing, they will still have more leverage to buy the tennis balls in proportion to the middle and lower class who are celebrating their meager $1200.
This aid package will decrease the prosperity of the middle and lower class, while the political ruling class benefits exponentially, widening the gap between the elites and the rest.
It doesn’t matter if it’s socialism on the right, socialism on the left, crony socialist capitalism, or whatever you want to call it, it is always the health of the State, and the disease of the rest.
Basically the State is using the Federal Reserve and Treasury department to toss a few crumbs to the population in the form of magical free money to distract the people from seeing the massive feast in which the elite political ruling class received on the credit of future generations to pay for.
It’s basically a fiscal form of gang rape.
I hope you enjoy your free money.
If you care about the prosperity of the lower and middle class, you should be opposing the “aid” package.
If the massive gap between the elite political wealthy class, and the rest of the population disgusts you, you should be in opposition to the “free” monopoly money being dispensed.
